JRP Group PLC BUSINESS UPDATE FOR THE QUARTER ENDED 31 MAR 2017 (4802F)

TIDMJRP

RNS Number : 4802F

JRP Group PLC

18 May 2017

 
NEWS RELEASE  www.jrpgroup.com 
 

18 May 2017

JRP GROUP PLC

BUSINESS UPDATE FOR THE 3 MONTH PERIOD ENDED 31 MARCH 2017

DISCIPLINED GROWTH

JRP Group plc ("JRP", "the Group") announces a business update for the period ended 31 March 2017.

Highlights

 
 
      *    Overall total new business sales of GBP436m grew by 
           13% (pro forma(1) ), driven by a large increase in 
           Defined Benefit de-risking (DB) volumes, partly 
           offset by more normal levels of mortgage advances. 
           Sales were up 92% compared to the statutory Q116 
           level, which excluded Partnership. 
 
 
      *    DB sales were 191% higher (pro forma) at GBP125m. DB 
           de-risking growth prospects remain very positive, as 
           we tailor solutions and focus on transactions of less 
           than GBP250m. 
 
 
      *    Guaranteed Income for Life (GIfL) sales were up 7% 
           (pro forma) to GBP174m, helped by a stabilizing 
           market and demographic growth. Care sales were GBP17m 
           due to increased pricing selectivity, offsetting the 
           increase in GIfL. 
 
      *    Lifetime Mortgage (LTM) advances fell by 29% (pro 
           forma) against a tough comparator. At 34% of 
           Retirement Income sales (Q116 pro forma - 63%), we 
           took advantage of attractive economics and have 
           warehoused excess assets for use later in the year. 
                                           Pro forma            Statutory 
                                3 months    3 months             3 months 
 JRP new business(2)                  to          to   Change          to 
                                31/03/17    31/03/16             31/03/16 
                                    GBPm        GBPm        %        GBPm 
 Defined Benefit De-risking          125          43      191          43 
 Guaranteed Income 
  for Life                           174         163        7          87 
 Care Plans                           17          29     (41)          13 
                               =========  ==========  =======  ========== 
 Retirement Income 
  sales                              317         235       35         142 
 Drawdown                             12           2      582           2 
                               =========  ==========  =======  ========== 
 Total Retirement 
  sales                              328         237       39         144 
 Protection                            2           1       20           - 
 Lifetime mortgage 
  loans advanced                     107         149     (29)          83 
                               =========  ==========  =======  ========== 
 Total new business 
  sales                              436         387       13         227 
                               =========  ==========  =======  ========== 
 

Rodney Cook, Group Chief Executive, said:

"While maintaining our strong focus on margins and profit growth, I am delighted that we have also been able to grow sales in the first quarter of 2017. Our core GIfL and DB products both grew well, confirming the momentum of these segments. The DB market offers sustained growth, and our pipeline in the below GBP250m segment remains very encouraging. Our profit focus should deliver IFRS new business margins in excess of the mid 6% range and we remain on track to deliver a sustainable mid-teen IRR(3) on shareholder capital deployed in new business by year-end 2018. This will be helped by the progress being made with the GBP45m merger cost saving programme. Along with a number of other firms, we have been granted Prudential Regulation Authority (PRA) approval to publish a single group Solvency and Financial Condition Report on 30 June. In common with most UK life companies, our capital position benefits from a significant transitional, in line with the PRA's stance that recognises transitionals as long term capital. The directors remain comfortable that the Group's capital position is appropriate to deliver the growth and returns that we are targeting. Overall we have enjoyed a solid start to the year and we remain on track to meet our expectations."

Notes

1. The merger of Just Retirement and Partnership is required for accounting purposes to be treated as an acquisition by Just Retirement of Partnership with an effective date of the beginning of April 2016. Accordingly, the statutory comparative information includes 3 months of sales by Just Retirement only. Pro forma sales are presented as though the merger took place at the beginning of January 2016, in order to give a better understanding of the merged Group.

   2.     Numbers in table subject to rounding. 
   3.     IRR: Internal Rate of Return 
 
 FINANCIAL CALENDAR                     DATE 
-------------------------------------  ------------------- 
 Annual General Meeting                 18 May 2017 
  Final dividend payment date,           26 May 2017 
  subject to shareholder approval        29 June 2017 
  Guaranteed Income for Life ("GIfL")    30 June 2017 
  seminar                                13 September 2017 
  Publication of Solvency & Financial 
  Condition Report (SFCR) 
  Interim results for the six months 
  to 30 June 2017 
-------------------------------------  ------------------- 
 
 
 Enquiries 
 
  Investors / Analysts             Media 
 
  James Pearce, Group Director     Stephen Lowe, Group Communications 
  of Corporate Finance and         Director 
  Investor Relations 
 
  Telephone: [phone]          Telephone: [phone] 
  085 099                          827 301 
  [e-mail]     [e-mail] 
 
                                   Temple Bar Advisory 
                                   Alex Child-Villiers 
                                   William Barker 
                                   Telephone: [phone] 
                                   1080 
------------------------------  ------------------------------------- 
 

A copy of this announcement will be available on the Group's website www.jrpgroup.com

JRP GROUP PLC

GROUP COMMUNICATIONS

Vale House, Roebuck Close

Bancroft Road, Reigate

Surrey RH2 7RU

This information is provided by RNS

The company news service from the London Stock Exchange

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